What Your CD Test Score Means

Find Out What CD Is Right For You

If you’re looking for an investment that protects your principle your principle while giving you a higher return than traditional savings accounts, Certificates of Deposit (CDs) are a smart option. They are FDIC insured which means that your money is protected by the US Government up to $100,000. To help you decide whether a short, medium, or long term CD is right for you, compare your test score to the chart below.

Certificate of Deposit Chart

If Your CD Test Score is…

Under 70 Points:
You need a lot of liquidity, so a CD may not be right for you. Keep accumulating money in an investment savings account, like a money market account.

70 to 80 points:
You need some liquidity, but you can afford to lock your money in for a short period of time. Choose a short-term CD that matures in 7 days to 12 months, and match the maturity date to your needs.

85 to 95 points:
You will probably require access to your funds within the next 12 to 14 months. Select a medium-term CD that matures in 1 to 2 years, and match the maturity date to your needs.

100 points or more:
You can afford to take advantage of the higher interest rates and long-term CD yields. Consider a CD that matures in 2 to 10 years, and match the maturity date to your needs.

The above chart is for your information only. Be sure to consult a customer service representative before opening a certificate of deposit or money market account. 2009 The Forms Group, All Rights Reserved.